Business

Japan’s Toyota raises its profit outlook after solid earnings helped by a weak yen

Published

3 months ago

February 6, 2024

admin

Japan's Toyota raises its profit outlook after solid earnings helped by a weak yen

Toyota raised its full fiscal year profit forecast Tuesday after reporting its profit in the October to December quarter nearly doubled from the year before.

Toyota Motor Corp.’s third quarter profit totaled 1.36 trillion yen ($9 billion), up from 727.9 billion yen in the same period in 2022, as Japan’s top automaker recovered from losses suffered when the coronavirus pandemic slammed computer chip production.

In the first nine months of the fiscal year, Toyota reported a 3.9 trillion yen ($26 billion) profit, more than double what it racked up the previous fiscal year.

A favorable exchange rate also helped the maker of the Camry sedan, Prius hybrid and luxury models. A weak yen raises the value of overseas earnings when they are converted into yen. The dollar has been trading at about 148 yen lately, up from 140 yen a year ago.

Quarterly sales rose 23% to 12.04 trillion yen ($81 billion) from 9.75 trillion yen.

Toyota, based in central Japan’s Toyota city, raised its full fiscal year profit forecast to 4.5 trillion yen ($30 billion), from an earlier forecast of 3.95 trillion yen ($27 billion). It earned 2.45 trillion yen in profit in the year that ended in March 2023.

Toyota also raised its full year sales projection to 43.5 trillion yen ($294 billion), from an earlier estimate of 43 trillion yen ($290 billion). It was 37 trillion yen in the previous fiscal year.

Cost cuts, marketing efforts and the currency exchange effects are behind its revision of its forecast, Toyota said.

The company did not raise its vehicle sales forecast for the full fiscal year, instead cutting it to 9.45 million vehicles. Toyota had earlier expected to sell 9.6 million vehicles. Even the lower forecast is better than the previous fiscal year’s sales of 8.8 million vehicles.

The shortage of computer chips has hurt automakers, including Toyota. Production has been suspended recently at Toyota group’s Daihatsu Motor Co., which makes small models, under Japanese government orders after the automaker admitted it had faked safety tests for decades.

No major accidents have been reported in connection with the cheating, but the tests will have to be carried out properly. The scandal began after a whistleblower came forward in April 2023. Daihatsu has apologized and promised sweeping reforms of its corporate culture.

The impact on Toyota sales and profits will be relatively limited because the subsidiary makes up a small fraction of Toyota’s massive global sales and production. But Toyota acknowledged sales for the year will decline in Japan because of Daihatsu’s problems.

The scandal has been a blow to Toyota’s brand image, as similar irregularities have emerged lately at other group companies like Hino and Toyota Industries.

Post Views: 49

Business

Chinese firm aims to expand investments in Pakistan, shows interest in mining sector

Published

1 day ago

May 17, 2024

admin

Chinese firm aims to expand investments in Pakistan, shows interest in mining sector

A notable Chinese company has expressed keen interest in expanding its investment in Pakistan, in yet another sign of investor confidence boost in the leadership of Prime Minister Shehbaz Sharif.

A delegation from Chinese firm MCC Tongsin Resources led by its Chairman Wang Jaichen called on PM Shehbaz here on Friday.

The premier invited the Chinese company to invest in Pakistan’s mining sector and manufacturing of export goods.

Shehbaz assured the delegation that his government would extend all-out facilitation to the company from minerals exploration and processing to the export of goods.

The PM instructed the relevant federal ministers and officers to continue consultation with the Chinese firm, taking the Balochistan chief minister, provincial departments and stakeholders on board.

The delegates reposed trust in PM Shehbaz’s leadership, and expressed keen interest in enhancing their investment in Pakistan’s mining and minerals sectors.

The delegation briefed Prime Minister Shehbaz about the construction of a mineral park in Pakistan and their future investment plans.

The premier welcomed the Chinese firm and highlighted the priority steps by his government to promote foreign investment in Pakistan.

He said that being a time-tested friend, China supported Pakistan in every difficult hour for which the Pakistani nation was grateful to the leadership and people of China.

Federal ministers Ahad Khan Cheema, Dr Musaddik Malik, Rana Tanveer Hussain, Jam Kamal Khan and relevant senior officers attended the meeting.

Post Views: 10

Business

Govt jacks up power price by Rs1.47 per unit

Published

1 day ago

May 17, 2024

admin

Govt jacks up power price by Rs1.47 per unit

The government on Friday increased the electricity tariff by Rs1.47 per unit.

According to Nepra sources, the collection from consumers will take place in August, September, and October.

The electricity companies had requested the funds as part of the third quarter adjustment for 2023-2024, seeking Rs 31.34 billion under capacity charges.

Sources said that Rs5.57 billion were requested for operation and maintenance costs, and Rs12.38 billion were requested for the transmission and distribution impact under monthly fuel cost adjustment.

Previously, Nepra had completed the hearing on the electricity companies’ request under the quarterly adjustment.

Nepra approved the Power Division’s request, allowing an increase of Rs 1.45 per unit in electricity prices.

Post Views: 17

Business

Hong Kong allows China’s digital yuan to be used in local shops

Published

1 day ago

May 17, 2024

admin

Hong Kong allows China's digital yuan to be used in local shops

Hong Kong will allow mainland China’s pilot digital currency to be used in shops in the city, the head of its de facto central bank said on Friday, marking a step forward for Beijing’s efforts to internationalise the yuan amid rising geopolitical tensions.

The programme, backed by Beijing, will allow mainland Chinese and Hong Kong residents to open digital yuan wallets via a mobile app developed by China’s central bank and will permit them to make payments in retail shops and some online stores in Hong Kong and in mainland China.

Transactions using e-CNY, predominantly for domestic retail payments in China, hit 1.8 trillion yuan ($249.27 billion) as of end of June 2023, with 120 million digital wallets opened, according to the latest disclosure from China’s central bank.

Using the wallet, users can make payments at over 10 million merchants in 17 provinces and cities in the mainland.

Each wallet used in the city will be subject to a balance limit of 10,000 yuan, with single transactions and daily payments capped at 2,000 yuan and 5,000 yuan, respectively, officials from the Hong Kong Monetary Authority said.

Peer-to-peer transfers will not be allowed at the moment, according to the HKMA.

“By expanding the e-CNY pilot in Hong Kong .. users may now top up their wallets anytime, anywhere without having to open a mainland bank account, thereby facilitating merchant payments in the mainland by Hong Kong residents,” HKMA Chief Eddie Yue said.

Currently, users of other digital yuan wallets such as those operated by Ant Group and Tencent can make payments in the city.

Industrial and Commercial Bank of China, Bank of China Ltd, China Construction Bank Corp and Bank of Communications Co have been selected as e-CNY wallet operators.

The yuan’s use in global finance remains low, though it has shown steady increases.

Post Views: 13